• Indus Motor Company (IMC) Limited will halt production from July 15 to July 22.
• The decision is driven by low vehicle inventory and parts shortages.
• Pakistan’s auto sector faces difficulties amid sluggish economic growth.

The Indus Motor Company (IMC) Limited, known for assembling and selling Toyota vehicles in Pakistan, has announced a temporary shutdown of its plant from July 15 to July 22, 2024. This decision comes as a response to significant inventory shortages affecting the company’s operations, as stated in a notice filed with the Pakistan Stock Exchange (PSX) on Friday.

The company cited challenges in its supply chain that have adversely impacted production, leading to the temporary cessation of manufacturing activities. According to the statement issued, “Based on the current low level of inventory of manufactured vehicles and shortage of parts and components for manufacturing of vehicles, due to supply chain challenges, the company has decided to close its production from 15th July 2024 to 22nd July 2024 (both days inclusive).”

Pakistan’s automotive sector has been grappling with substantial challenges amid sluggish economic growth, rising inflation, and high borrowing costs, which have collectively dampened vehicle sales across the board.

A recent report from JS Research highlighted that Pak Suzuki, Honda, and Toyota, collectively known as the “Big Three” in Pakistan’s auto industry, reported a combined volume of approximately 88,000 units for the financial year 2023-24, marking a 21-year low in sales. This decline is attributed to reduced consumer purchasing power, increased imports of used cars, and higher car prices driven by currency depreciation and increased taxes on auto manufacturers.

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In comparison, the Big Three sold a total of 113,346 units in the preceding financial year 2022–23, underscoring the stark downturn in market demand and economic conditions impacting the automotive sector.

The temporary shutdown by Indus Motor Company reflects broader challenges faced by Pakistan’s auto industry as companies navigate supply chain disruptions and market uncertainties amid ongoing economic pressures.